End of Year Review – April to June 2022
Moving into the spring of 2022, we were faced with a myriad of changes from HMRC to keep us on our toes. But there was more to April, May and June than simply tackling tax relief twists and turns.
April
Richard Branson is quoted as saying “Doing good really is good for business”, and we could not agree more. At YesTax, we donate 2.5% of all our fees to children who live in poverty, which amounted to a total fund of £150,000 at the end of February. This is not just another corporate responsibility programme. We take an active role in the projects that we support by working in them. And just like Sir Branson, we know the benefits this brings to our own business.
Our belief in “Business for Good” didn’t stop there, and it was only fitting that in April we doubled down efforts to prove what good eggs we are, with a donation of over 470 chocolate Easter eggs to a local primary school. And in addition, we announced that we would be holding a charity Bistro Night, with all money raised to further support the fantastic work being done in Nepal.
We also took a closer look at big changes that were likely to be brought forward in the government’s Autumn Budget.
YesTax was pleased to hear at the spring statement that the government is working on changes to the UK’s capital allowance regime rules by bringing the amount of relief available for capital spend in line with other OECD countries, to further encourage investment in the UK.
May
At the beginning of May we provided a little insight on HMRC’s stricter approach to customer funded R&D projects, and two possible arguments that could be used to deny R&D tax relief to applicants. In similar news HMRC announced that it had paused a number of R&D tax credit payments whilst it investigated ‘irregular claims’.
For companies involved in patenting their intellectual property, YesTax provided some detailed guidance on the Patent Box tax relief, including the entitlement and scope of any claim, as well as the all-important timing.
And...
...We were incredibly proud to report that we had been awarded the title of Niche Firm of the Year 2022 at the Yorkshire Accountancy Awards.
June
The UK’s Aerospace sector is a leading investor in research and development. It has been shown, through analysis by the Aerospace Technology Institute (ATI), that over a 10-year period, for every pound spent on R&D within the industry, the wider economy benefits by generating an average of 70p gross value added. This is one key reason why the government seeks to support this activity via its R&D tax relief scheme, which provides a rate of relief between 24.7% and 33.35% of the qualifying expenditure invested into research and development projects.
Following on from HMRC’s May announcement that a number of R&D tax credit payments had been paused pending investigation, just one month later there was yet a further announcement around the expected processing time for claims.
And our final look back at quarter two features the announcement of our new YesTax charity partner, Support Dogs.
Support Dogs assist with conditions such as autism, epilepsy, and physical disabilities, providing safety to children and reducing stress in social environments. The dogs are 100% reliable and will provide warning up to 50 minutes prior to the onset of an epileptic seizure.
YesTax has donated £24,000 to fund the training of a puppy and early in June, Mark, Hayley, Alison, and Melanie from our team paid Support Dogs and their K9 heroes a visit.
YesTax. Positively Better.